Latest Update in the China Pig Iron Market

A total of 104 vessels carrying 15.01 million mt of iron ore arrived at major Chinese ports during September 20-26, SMM estimates. This was up 2.81 million mt from the previous week. The amount of arrivals in Shandong and Tangshan both increased week on week, with arrivals in Shandong rising more than 50%.

The purchasing managers index (PMI) for steel stood at 52.56 points in September, up 2.50 points from August but down 0.31 point on the year.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on September 29, 2020

A total of 104 vessels carrying 15.01 million mt of iron ore arrived at major Chinese ports during September 20-26, SMM estimates. This was up 2.81 million mt from the previous week. The amount of arrivals in Shandong and Tangshan both increased week on week, with arrivals in Shandong rising more than 50%.

The dollar pulled back from a two-month high against a basket of currencies on Monday as equities rallied after four straight weeks of declines ahead of a slew of economic data and political developments in the United States.

DCE iron ore futures market stepped up slightly, which raised up the physical port stock prices and mills’ purchasing intentions as well. PBF was concluded at 880 and 895yuan/mt in Shandong and Tangshan markets, while that at Tianjin port increased to 895yuan/mt as the iron ore deliveries from Jingtang and Caofeidian ports are still being prohibited.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on September 28, 2020

Shanxi Jianlong Industrial commissioned the hot-blast stove of a 1,800 m³ blast furnace in Wenshui county, Shanxi province on September 16 after taking over Haiwei Iron & Steel. Haiwei Iron & Steel closed in November 2018 to undertake environmental protection upgrading, but the work has been suspended since May 2019 due to the arrest of the mill owner. Jianlong Industrial plans to expand the annual steel capacity of this project from existing 3 million mt to 5 million mt in the future and achieve sales revenues of 50 billion yuan.